Deck4 Flashcards
(15 cards)
According to US GAAP both debt and equity securities may be classified as
Available for sale and Trading
According to the FASB conceptual framework an entity revenue would result from?
Inflows are increases in assets and decreases of liabilities, outflows would be the opposite.
Which of the following would be considered a cash basis rather than an accrual basis method of revenue recognition
Percentage of completion
Completed contract
Installment method
Installment method
Current assets are assets that are reasonably expected to convert into cash, be sold, or consumed:
within one year or one operating cycle, whichever is longer.
Current liabilities are obligations with maturities
within one year or one operating cycle, whichever is longer.
Under GAAP how many years worth of comparative statements are needed for publicly traded companies state years for income state, statement of cash flows, and balance sheet?
IS and CF - 3 years
Balance sheet - 2 years
What are the items not included for industry segment reporting
General corporate expense
interest expense
income taxes
gain and loss from discontinued operations
For financial statement purposes when would the installment method be used.
When the amount collected cannot be determined.
Describe a script dividend
A script dividend is a promise to pay dividends in the future and may bear interest. The interest would not be expense until the dividends are paid.
What is a small stock dividend and how would it be capitalized?
Less than 20% and at FMV
what is a large stock dividend and how would it be capitalized
Greater than 20% and at par
How is net realizable value calculated
=selling price - costs of completion, disposal, and transportation
For FIFO or weighted average if market value or NRV is less than the cost the inventory is _____________
Impaired
what is replacement cost
Replacement cost is the market value for a unit when using lower of cost or market for LIFO. The replacement cost must be between a ceiling and a floor. The ceiling is NRV. The floor is NRV - normal profit margin.
When is replacement cost used?
for LIFO only
